US court allows Meta to keep WhatsApp, Instagram: Decoding the case

A US federal court has rejected the FTC's attempt to break up Meta, ruling that Instagram and WhatsApp can remain under the company's control - a major blow to regulators targeting Big Tech dominance

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A US federal court on Tuesday (local time) ruled in favour of Meta Platforms, allowing it to keep Instagram and WhatsApp, according to a report by the Financial Times. The ruling marks a big win for Meta and a major setback for US regulators.

What was the case about?

The US Federal Trade Commission (FTC) had sued Meta, saying the company had maintained a monopoly, hurting smaller rivals. The suit was initially filed in December 2020, in conjunction with 46 states. While dismissed in June 2021, the lawsuit was refiled with an amended complaint in August 2021.

 

In its case, the FTC argued that Meta bought Instagram in 2012 and WhatsApp in 2014 to stop future competition. It added that Meta used a “buy-or-bury” strategy, meaning it either bought rising rivals or crushed them.

 

The government wanted the court to order the $1.5 trillion tech company to break up by selling Instagram and WhatsApp. Meta, however, argued that competition is strong, especially from TikTok.

What did the ruling say?

The court ruled in favour of Meta, allowing it to keep Instagram and WhatsApp. In the trial, the judge accepted Meta’s argument, noting TikTok’s fast growth since 2018. The court said the FTC did not prove that Meta still controls the social media market because the company competes with TikTok, YouTube and other platforms.

 

It also noted that the social media industry has changed significantly in recent years and that Meta is not illegally controlling the market today.

Why was the case important?

This was one of the biggest recent attempts by the US government to limit the power of Big Tech companies. Had the FTC won, Meta might have been forced to split up, establishing a precedent for future cases involving Google, Apple and Amazon.

How does this fit into the wider Big Tech crackdown?

US antitrust regulators have continued to pressure Silicon Valley firms over their dominance in social media, e-commerce and online search.

 

In October 2020, the US Department of Justice (DOJ) filed a similar antitrust case against Google seeking its breakup. But in September this year, a US federal court allowed Google to keep products like YouTube and Chrome under the same company rather than spin them off.

 

The court later ruled that the rapid growth of generative artificial intelligence (AI), led by tools such as OpenAI’s ChatGPT, has increased competition in internet search.

What’s next?

According to the Financial Times, the FTC said it is “disappointed” and is considering its next steps, including a possible appeal.

 

Meta welcomed the ruling, saying it proves the company faces real competition. “The court’s decision recognises that Meta faces fierce competition... We look forward to continuing to partner with the administration and to invest in America,” the company said.

 

For now, Meta remains whole, keeping Instagram and WhatsApp under its brand.